Interesting interview with Zillow's CEO on the status of US home real estate ...
Highlights:
Nationwide, there has been a 29% decrease in home values since the peak. Zillow expects another 3-5% decrease over the next year with prices then stabilizing for the next few years.
30% of homeowners with mortgages are "upside-down" meaning that their mortgage is greater than the value of their home. No real problem with this situation if you and/or your spouse have stable employment. Loss of a job and the inability to meet mortgage payments can quickly put the homeowner in jeopardy of a home foreclosure.
Shown below are a series of charts summarizing the latest single family home sales in Longmeadow, Massachusetts. These latest results from January - September 2011 include both MLS and FSBO transactions and are based upon public information obtained from the Hampden County Registrar of Deedswebsite.
January - September / 2011 Highlights
Home sales in Longmeadow for the first nine months of 2011 were lower (-18.9%) vs. the previous year (103 vs. 127) and also lower (-25.9%) vs. the 6 year average (103 vs. 139) and significantly lower (-36%) vs. the first nine months of 2007 (161). See figure 1 below.
The latest median sales price for homes in Longmeadow for the 3Q/2011 was slightly higher ($315,000) as compared to that for the 2Q/ 2011 ($310,000) but 4.8% lower vs. September 2010 ($330,800).
The current median price is still lower (-10%) than the peak reached in September 2007 ($350,000).
For the past 4 years home sales prices have shown a seasonal cycle with prices strengthening during the summer months when demand for homes typically increases. 2011 results showed a similar trend. See figure 2 below.
A large percentage of homes continue to be sold at prices below the official assessment value continuing a trend that has been observed for the past 2½ years. For all of 2010, ~ 50% of the homes sold were at prices below the official assessment value. For the first nine months of 2011 the percentage of home sold at prices below the official assessment value was 55% (57 out of 103). See figure 3 below.
At the current sales rate, the number of homes sold in Longmeadow for 2011 will likely turn out to be the lowest for past 6 years. With a current inventory (MLS + FSBO) of ~130 homes for sale, the average time to sell a home is now approaching 12 months.
Selling a home in the current environment continues to be very difficult.
Below is a chart showing the relationship between recent Longmeadow real estate Sales Prices and Assessed Values (data obtained from the Vision Appraisal website).
CHICOPEE, Mass. (WWLP) - The American dream of owning a home is now starting to be put on the back burner. The U.S. housing market is feeling its biggest drop since the Great Depression.
New numbers from the Census bureau show that the homeownership rate in this country fell to 65% last year. Experts believe that these numbers seem to indicate that the U.S. may never have another housing boom peak like the one seen during the mid-decade.
So what's the reason behind this drop in Americans owning a home? Many blame the tighter-credit rates, prolonged job losses and reduced government involvement.
Who makes up for this drop? Unemployed young adults in their twenties are more likely to delay their first-time home purchase, by living at home with mom and dad. Middle-aged adults, ages 35-64, used to make-up the highest ownership rate, but that group was hit with mortgage foreclosures and bankruptcy after the housing market bust back in 2006. Those ages 65 and older now have the highest ownership rate nationwide.
There is some good news if you are looking to purchase or refinance a home. That is because the average mortgage rate has hit its lowest level ever. The average rate on a 30-year fixed mortgage fell to 3.94% last week.
Shown below are a series of charts summarizing the latest single family home sales in Longmeadow, Massachusetts. These latest results from January - June 2011 include both MLS and FSBO transactions and are based upon public information obtained from the Hampden County Registrar of Deeds website.
1Q-2Q/ 2011 Highlights
Home sales in Longmeadow for the first six months of 2011 were lower (-9.6%) vs. the previous year (66 vs. 73)and also lower (-15.9%) vs. the 6 year average (78.5) and significantly lower (-34%) vs. the first six months of 2007 (100).
Median sales prices for homes in Longmeadow rebounded significantly in the 2Q/2011 (--> $310,000) and were significantly higher than earlier this year. However, median prices are still lower (-11.4%) than the peak reached in September 2007 ($350,000). For the past 4 years home sales prices have shown a seasonal cycle with prices strengthening during the summer months when demand for homes typically increases. 2011 appears to be showing the same effect.
A large percentage of homes continue to be sold at prices below the official assessment valuecontinuing a trend that has occurred for the past 2 years. For all of 2010, ~ 50% of the homes sold were at prices below the official assessment value. For the first six months of 2011 the percentage of homes sold at prices below the official assessment value was 59% (39 out of 66).
Selling a home in Longmeadow continues to be difficult. Let's hope that the latest results is signaling a bottom in home prices that will result in some much needed and long anticipated price stability.
The first quarter was not a particularly good one for Longmeadow home sellers. While the number of sales were pretty good, the median sales price showed a large decline. Below are the highlights:
1Q/ 2011 home sales in Longmeadow were improved vs. 1Q/2010 (27 vs. 25) but lower (-11.4%) vs. the 6 year average and significantly lower (-34%) vs. 1Q/2007.
The median sales price for homes sold in Longmeadow dropped significantly in the 1Q/ 2011 to the lowest level in ~ 4 years ($274,500). The median sales price was 7.1% lower than one year ago (- $21,000). and 21.6% lower than the peak in 2007 ($350,000).
A large percentage of homes continue to be sold at prices below the official assessment value continuing a trend that has occurred for the past 2 - 3 years. For all of 2010, ~ 50% of the homes sold were at prices below the current assessment price.
However, since October 2010 the percentage of homes sold at prices below the current assessment value has increased to ~ 75% (42 out of 57).In the 1Q/2011, 20 out of 27 homes(74%) were sold below the assessment value.
In the 1Q/2011, there were 5 homes sold at prices greater than $100K below the assessment value.
Selling a house in Longmeadow continues to be difficult. Let's hope that low mortgage interest rates will provide some stability for the Longmeadow housing market and that 2011 will show an improved real estate market.
Below is a chart showing the relationship between recent Longmeadow real estate Sales Prices and Assessed Values (data obtained from Vision Appraisal website).
After a very slow start for 2010 with February, April and May being three of the worst sales months in the past five years, there was a significant rebound in the June through September period. However, a slowing of sales for the October - December 2010 period resulted in full year results (158) being lower vs. 2009 (168, -4.2%) and similar to 2008(159, -1%).
2010 sales levels (158) were still much lower than for the corresponding periods in 2006 (189, -16.4%) and 2007 (196, -19.4%).
Median sales prices for homes in Longmeadow stabilized during 2010 and ended the year higher. However, median prices at the end of the year were still 10.8% lower than the peak reached in September 2007 ($312,000 vs. $350,000).
A large percentage of homes were sold at prices below the official assessment value continuing a trend that has been in place for the past two years (see figure 2). For the year 49% of the homes (86 out of 158) were sold below the current assessed value. For the final three months (Oct --> Dec) 73% of the homes (22 out of 30) were sold below the current assessed value. In 2010, 10 homes were sold at greater than $100,000 below assessed value.
In 2010 there were 11 foreclosures in Longmeadow according to filings at the Hampden County Register of Deeds. This compares to 1 foreclosure in 2009 and 1 in 2008.
Selling a house in 2010 was difficult. Let's hope that the current low mortgage interest rates will continue to provide some stability for the Longmeadow housing market and that 2011 will show an improved real estate market.
Below is a chart showing the relationship between recent Longmeadow real estate Sales Prices and Assessed Values (data obtained from Vision Appraisal website).
